Following voter approval of a new property tax increase to help pay for city services, Salem city councilors will vote Monday on establishing a new oversight committee to ensure taxpayer funds are used to pay for parks and recreation, the public library and Center 50+. 

The five-year levy was approved by voters in the May 20 election under the condition that an oversight committee be established to review levy expenditures and provide annual reports to the city council.

The proposal calls for a seven-member committee made up of three city councilors and four Salem community members, one representing each service funded by the levy, and one other community member, according to a staff report from Salem Chief Financial Officer Josh Eggleston. Mayor Julie Hoy would appoint the committee.

The group’s s primary responsibilities would be to ensure the levy funds are used only to support parks and recreation, the public library, and Center 50+. The committee would also provide annual financial audit results, a five-year forecast, a proposed budget, and quarterly financial reports, the report said. 

All oversight committee meetings would be open to the public and meeting materials would be posted to the city’s website, the report said. Levy funds would be deposited into a special city fund which would be subject to independent audit annually to make sure funds are being used properly. 

Final vote on 2026 budget

Salem city councilors will also vote on adopting the 2026 budget authorizing the city to spend a total of about $785 million according to a staff report from Eggleston. The next budget cycle begins on July 1, and the city is required by law to adopt its budget prior. 

Because of the passage of the levy, the budget largely maintains existing city services and restores some library staff positions that were cut last year.

Parking tax 

City councilors will vote on whether to adopt the 2026 parking district budget and setting the tax rate for downtown parking that’s paid by businesses, according to a staff report from the city’s Director of Community Planning and Development Kristin Retherford. 

The 2026 budget accounts for an operating budget of nearly $2 million in the downtown parking fund, the report said. That budget keeps flat a business parking tax rate of $169 per space or $469 minimum tax.

That tax will eventually sunset sometime after new metered parking downtown begins on July 10. Revenue from the paid parking will eventually be assessed to determine when the business parking tax can be phased out, the report said. 

Capital improvement plan 

City councilors will also consider approving the city’s capital improvement plan for the next five years, a staff report from Eggleston said. A new plan is adopted each year to outline planned projects for roads, parks, city facilities and other infrastructure.

The capital improvement plan that will be considered includes planned capital projects expected to cost about $420 million, the report said. Projects include community facilities costing about $27 million, municipal facilities costing about $70 million, transportation projects costing about $161 million, and utilities projects costing about $162 million. 

More details on specific projects are available in the city’s 2026-2030 recommended five-year capital improvement plan document.

Other items

• Mai Vang, a Salem family law attorney, will be sworn in as the new Ward 6 city councilor on Monday, filling a seat that has been vacant since Hoy became mayor in January. Vang won a three-way race for the seat in May.
• Councilors will discuss a new city report consisting of plans to add more police patrols and pair medical responders with mental health specialists. The report comes after downtown business owners called on the city to clean up downtown. Councilors will consider the options but will not be voting on any new policies.  
• City councilors will also hear a report from City Attorney Dan Atchison explaining the financial damages the city would likely incur if it were to terminate one or both of the city’s contracts with Avelo Airlines. The airline came under fire in Salem after public pressure following the airline’s announcement that it is contracted with the U.S. government to assist with deportation flights. According to the report, if the contracts were to be canceled, the city would likely owe damages to the airline and would have to pay back the federal government $850,000 in federal aviation grants, and potentially also give back $350,000 in private contributions from Salem residents to support the airport’s minimum revenue guarantee. 
• Councilors will also hear information reports on approved conditional use permits for a residential care facility at 325 Lancaster Dr. S.E., and for a drive-through oil change business at 3271 Lancaster Dr. N.E.

Contact reporter Joe Siess: [email protected] or 503-335-7790.

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